For nearly two decades, unscrupulous lawyers and serial plaintiffs have targeted franchisees with meritless lawsuits intended to extort tens of thousands of dollars under the guise of helping Americans with disabilities. As such, thousands of small-business owners have been victims of lawsuits that did not seek to increase access or eliminate barriers; rather, the complaints often vaguely described an overly technical or potential infraction and demanded thousands of dollars to settle the case. Frequently, the settlement demand was slightly lower than the amount the business owner would have to pay to defend himself in legal proceedings, forcing him or her to make the financial determination to settle rather than contest these fraudulent claims.
The intent of the Americans with Disabilities Act (ADA) – which NFA has long supported – is to prohibit discrimination and ensure all Americans have equal opportunities. Unfortunately, as discussed above, the law has been used as a weapon by scheming lawyers and unethical plaintiffs seeking to make a quick buck off small-business owners through demands for exorbitant attorney's fees.
On Jan. 24, Reps. Ted Poe (R-TX-02) and Scott Peters (D-CA-52) introduced the ADA Education and Reform Act (H.R. 620). This bill discourages incentives for lawyers seeking exorbitant legal fees by requiring notice of an alleged violation and allowing business owners the opportunity to cure any problems before legal proceedings can continue. It also requires complainants to provide specific information detailing the circumstances surrounding the denial of access, while directing the development of state and local educational programs on ADA compliance. On Feb. 15, the bill passed out of the House by a vote of 225-192, with 12 Democrats voting for the bill. It now sits in the Senate, where it is awaiting a bill sponsor. Unfortunately, those in opposition to the bill are distorting its provisions by claiming that it fails to address the problem and will weaken the ADA.
THE ASK
House: No ask – check vote and thank if voted for; discuss if voted against
Senate: Ask to support legislation which will help diminish the number of drive-by lawsuits!
TALKING POINTS
- While I strongly support the ADA, lawyers across the country have exploited loopholes in the law that circumvent the legal process and force small-business owners like me to pay unjustified settlements.
- H.R. 620 protects small-business owners from liability from frivolous lawsuits and helps us focus on creating jobs and running our business.
- H.R. 620 is a commonsense bill that will strengthen the ADA while giving me a reasonable time frame in which to ensure my business is fully accessible to everyone.
- Please help protect small-business owners in your district, as well as thousands of job creators across the country by supporting H.R. 620.
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